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Roll your debt into a single payment. Transform your kitchen. Don’t sweat unexpected expenses. Your home’s equity is there to answer the call.
Want lower rates? Put away the credit card and tap into your HELOC.
It takes minutes to apply and decisions are quick. Plus, a dedicated loan officer will be there to answer all your questions.
When you use it for home improvements, the interest you pay could be tax-deductible.3
Only borrow what you need. It replenishes as you repay it—and you choose fixed or variable rates.
Home equity—it’s a valuable asset.
Put yours to work for you—with a home equity line of credit, or HELOC.
A HELOC lets you tap into your home’s equity and borrow against it. You can use a HELOC for almost anything like home improvements, which can increase your home’s value. A HELOC can also be used for paying down high interest debt or for large expenses likemedical or education costs.
What’s home equity? It’s the current market value of your home minus the amount you owe your mortgage lender.
With a HELOC, you can borrow against a portion of your total equity. Typically, lenders allow you to borrow a total combined amount of 75 to 90% of your home’s value. To calculate your potential HELOC amount, simply subtract your outstanding mortgage balance.
Here's an example. Alender determines you can borrow against 80% of your home's value. Since your home is valued at $250,000, 80% of that is $200,000. After you subtract your mortgage balance of $150,000, your potential HELOC amount is $50,000.
Your credit score and debt-to-income ratio also play a role in calculating your HELOC amount. A HELOC is similar to a credit card because you can withdraw funds up to your limit. But unlike a credit card, a HELOC uses your home as collateral, so it’s smart to borrow only what you need.
Some lenders may charge you fees to open a HELOC. Having all the information can help you figure out if a HELOC will work for you.
Generally, you can choose a variable or fixed interest rate with a HELOC, depending on your situation. Then you’ll receive a revolving line of credit available for a set period of time, known as the draw period.
During the draw period, you make payments toward your balance, and you can draw funds up to your available limit. When the draw period ends, the repayment period begins, and it’s your responsibility to pay off the balance before the maturity date.
Think a HELOC may be right for you? We're here to help. Reach out to discuss your home equity or visit Truist.com/HELOC.
How large of a line of credit can I obtain?
What will it take to pay off my line of credit?
This calculator is made available by one or more third party service providers. It is not intended to be an advertisement for a product or service at any of the terms used herein. It is not intended to offer any tax, legal, financial or investment advice. All examples are hypothetical and are for illustrative purposes. Truist Financial Corporation ("Truist") and its affiliates do not provide legal or tax advice. Truist cannot guarantee that the information provided is accurate, complete, or timely. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Truist makes no warranties with regard to this calculator or the results obtained by its use. Truist disclaims any liability arising out of your use of, or any tax position taken in reliance on, this calculator. Always consult an attorney or tax professional regarding your specific legal or tax situation.
The Annual Percentage Rate (APR) for a HELOC is calculated based on a variety of factors, including credit score, loan-to-value, line amount, and location of the property securing the line of credit. With a home equity line from Truist, you can choose between a fixed or variable interest rate on each draw you take.
Variable-rate repayment: Your minimum required monthly payment is based on your current outstanding balance and includes both interest and a percentage of your principal balance. Each payment helps to reduce your principal balance. Drawing additional funds or paying more than the minimum required payment amount will affect your future monthly payments. For draws on a home equity line from Truist taken under the variable rate repayment option, the minimum monthly payment is equal to 1.5% of the total outstanding balance.
Interest-only repayment: For draws taken under the interest-only repayment option, your minimum monthly payment is equal to the finance charges accrued on the outstanding balance during the preceding month. The minimum payment will not reduce the principal outstanding under this option. The interest rate is variable.1
Fixed-rate repayment: For draws taken under the fixed-rate/fixed-term repayment option, the repayment term you select (60, 120, 180 or 240 months) will determine the minimum monthly payment plus interest and applicable fees. The annual percentage rate (APR) will be determined at the time the advance is posted to your account. There is a $15 service fee for each fixed-rate/fixed-term advance.
Your credit score is only one of the factors considered in the underwriting process, so having good credit, along with the other qualifications (sufficient equity in your home, allowable debt-to-income ratio, etc.) increases your likelihood for equity line approval.
It can take less than 15 minutes to fill out an application for a home equity line from Truist. Once all required paperwork has been received, the turnaround time from application to closing averages 30 – 35 days, which is one of the fastest times among our bank peers.4
Here's what you'll need to provide for your application:
A Truist representative will contact you after an application is submitted to review your information and request any required supporting documentation, such as tax statements and copies of paystubs.
A home equity line from Truist can be secured by an owner-occupied, single-family, primary residence, second home or condominium located in AL, AR, CA, DC, FL, GA, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV, and is not valid using investment homes, mobile or manufactured homes, or cooperatives. Truist must be in a valid first- or second-lien position. Applicants must occupy the second home a minimum of 14 days per calendar year, and there is a limit of one home equity line from Truist per individual or joint borrower. Other restrictions may apply.
With a home equity line of credit from Truist, you have the option to pay closing costs, or you can choose to have Truist advance most, if not all, of the closing costs on your behalf and waive reimbursement as long as your account is kept open for at least three years.5
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